The Community Express Pilot Loan Program is an effort by the Small Business Administration (SBA) to provide more opportunities for underserved populations of business owners, including women and minorities, and businesses in targeted development areas.
The Community Express program is one of the 7(a) loan programs offered by the SBA. It was restructured in 2008 to "better focus SBA’s financial and technical assistance resources on the needs of the Nation’s underserved communities...."
The loan process for Community Express loans is "streamlined and expedited," to provide for loans to businesses in Historically Underutilized Business Zones (HUBZones) and "distressed" communities. In addition,small loans up to $25,000 are available without collateral for business start-ups, through this program.
Here are the details:
- Maximum Loan Amount $250,000, at standard SBA business rates. Lenders may charge prime plus, with specific limits, depending on the loan maturity.
- Loan Terms.The program allows for revolving loans of up to 7 years maturity
- Eligibility & Credit Decisions/Turnaround. Eligibility is determined by the SBA, with a turnaround time of up to 36 hours. Credit decisions are made by the lenders.
- Collateral Requirements.Collateral is not required on loans up to $25,000.
A couple of notes:
- Community Express Loans, like other 7(a) loans, are provided as guarantees to lenders, not as outright loans.
- Lenders may have their own additional requirements for loans which may be stricter than those of the SBA.
- The Community Express program is a pilot, which means there may be changes in the program guidelines and in the number of loans which the SBA will guarantee.
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